from Gold Money:
This week bullion prices began to rise in quiet conditions, with gold rising over 6% and silver by slightly more. Trading patterns have changed, with much of the rise coming during US trading hours, confirming that the short positions on Comex are being squeezed.
These shorts are at record levels, as shown in the chart below of Managed Money shorts.
And it is not just Managed Money: the Swaps are now nearly in balance, as are ”Other Reported Positions” (i.e. large speculators) courtesy of their near-record shorts. And as we know, the bullion banks are now prepared for a price rise, having gone net long. But the most interesting development this week is Gold Forward rates (GOFO) turned negative.
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